Fortinet projects annual revenue above estimates, shares rise

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(Reuters) -Fortinet forecast its full-year revenue above Wall Street estimates on Thursday, as clients turn to its cybersecurity products to protect their digital operations from rising online threats, sending its shares up 12% after the bell.

Enterprise clients continue to invest in AI-powered cybersecurity products due to the rise in digital scams and high-profile security incidents that could affect their business operations and reputation.

The rapid development of generative AI has also led to increased data security investments, helping companies such as Fortinet, since the technology makes it easier to launch advanced cyberattacks.

Fortinet appears better positioned to benefit from the impending industry-wide firewall refresh cycle to retain, grow and win new estate, according to analysts at Citi.

Keith Jensen will retire from his position as Fortinet’s chief financial officer in May this year, the company said in a filing. He will be replaced by Christiane Ohlgart, who has been Fortinet’s chief accounting officer since March last year.

The cybersecurity firm expects to generate revenue in the range of $6.65 billion to $6.85 billion for fiscal 2025, while analysts, on average, expect $6.63 billion, according to data compiled by LSEG.

Fortinet sees revenue between $1.50 billion and $1.56 billion for the first quarter, the midpoint of which is in line with estimates of $1.53 billion.

The company posted revenue of $1.66 billion for the fourth quarter ended December 31, beating analysts’ estimates of $1.59 billion.

(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)